WeWork Secures 4,100sqm in 50 Miller Street, North Sydney

06.11.2018Office Leasing

In a further sign of the continued strength of the North Sydney CBD office market, Sumner Capital’s 50 Miller Street is now fully leased with global shared workspace company WeWork snapping up the remaining 4,100 square metres of commercial space within the building plus naming rights

The transaction marks WeWork’s first foray into the North Sydney market and also follows The United States of America taking a 12-year lease over 6,100 square metres at 50 Miller Street in April this year.

WeWork’s General Manager Balder Tol said Expanding beyond the Sydney CBD, our network strategy positions us well to create a diverse and vibrant community of creators and innovators. At 50 Miller St, we see a wonderful opportunity to create a place that supports local businesses of all scales to grow.”

Jonathan Kearins, Head of Real Estate, Australia & New Zealand, commented “North Sydney’s strength as a business hub lies not only in its proximity and connectivity to the city’s CBD, but as a fantastic alternative in its own right. The precinct’s strong business community make North Sydney truly a location of choice, and with excellent amenity and access to the Sydney Harbour foreshore, the area makes for a highly attractive place to live, work and play.”

WeWork currently has nine open locations across Australia, with another six announced. WeWork at 50 Miller St is expected to open in April 2019. 50 Miller Street offers 10 levels of commercial office space and was acquired by Sumner Capital and Prime Super in 2014.

“We are delighted to have the building reach full occupancy so quickly and to have attracted such high-profile tenants on long lease terms. Having WeWork and The American Consulate choose 50 Miller Street is testimony to the success of the upgrade which transformed the asset to an A Grade standard,” said Kirby Parsonage, Director at Sumner Capital.

A substantial refurbishment of the 10,500 square metre building was undertaken including a new building entrance featuring a dramatic street awning and an upgraded foyer with a new retail area, a new lift system and the addition of high-quality end-of-trip facilities.

According to Cadigal, demand remains strong for commercial office space in North Sydney as a result of improving transport and infrastructure with the Sydney Metro and Victoria Cross Integrated Station Development.

“This latest transaction shows the continued strength of North Sydney as a corporate location. Certainly the low vacancy rates and continuing demand are also a reflection of this,” said Craig Dolman, Director at Cadigal.

According to Cadigal, the vacancy rate in North Sydney continues to fall, dropping from 7.9 per cent to 6.3 per cent over the six months to July, 2018. Premium space has seen the greatest contraction in vacancy rates, dropping from 17.4% to 1.9% as several large tenants took occupation in 101 Miller Street.

Sumner Capital was established in 2008 and manages over $300 million of Australian real estate for local and offshore investors. It is currently raising equity for a trust with a single property asset, the heritage-listed 117 Harrington Street property in Sydney’s Rocks.